cent from Duluth and Superior and 51, 53, and 55 percent from St. Paul, Minnesota Transfer, and Minneapolis respectively.

The proposed rates from Duluth would create departures at approximately 18 intermediate destinations ranging from 438.6 to 587.2 miles, Kampeska, S.Dak., to Ludden, N.Dak., inclusive. The rates proposed on crude oil are generally 80 percent of the corresponding rates on petroleum. The rates from Duluth also apply from Superior and those from St. Paul also apply from Minnesota Transfer, and Minneapolis. Therefore the rate situation only from Duluth and St. Paul will be discussed herein. The present rates over the direct routes are in conformity with section 4 of the act. The proposed rates on crude oil from Duluth would yield tonmile revenue of 8.5 mills and car-mile revenue of 23.1 cents, based on the average loading of 54,000 pounds. The present rate to the first higher rated intermediate point, Kampeska, 438.6 miles, is 26.5 cents, and to the last higher rated intermediate point, Ludden, 587.2 miles, is 43 cents on both petroleum and crude oil. To the equidistant point, Cobden, Minn., 312.1 miles, the rate is 21 cents. The routes from Duluth and Superior are unduly circuitous, and as applicants have failed to show, among other things, that the transportation of this traffic over their route and the diversion of such traffic from the direct route would not constitute wasteful transportation, the relief sought from those points will be denied.

The proposed rate of 24 cents on crude oil from St. Paul would yield revenues of 11.4 mills per ton-mile and, based on the average loading of 54,000 pounds, 30.8 cents per car-mile. To the first higher rated intermediate point, Kampeska, 262.8 miles, the present rate on crude oil is 25 cents and to the last higher rated intermediate point, Ludden, 411.4 miles, 41.5 cents on both petroleum and crude oil. To the equidistant point, Elrod, S.Dak., 277.8 miles, the present rate on crude oil is 25 cents. Rates over the proposed route from St. Paul, Minneapolis, and Minnesota Transfer appear to be reasonably compensatory.

Applicants will be authorized to establish and maintain the proposed rates from Minneapolis, Minnesota Transfer, and St. Paul to Oakes and to maintain higher rates to intermediate points; provided, that the rates at the higher rated intermediate points shall not be increased, except as may be hereafter authorized by this Commission, and shall in no case exceed the lowest combination of rates subject to the act; and provided further, that the relief authorized shall be subject to the equidistant provision of section 4 of the act. All other and further relief prayed by this application will be denied. An appropriate order will be entered.

No. 251211

CARL WEST v. ILLINOIS CENTRAL RAILROAD COMPANY ET AL.

Submitted November 21, 1932. Decided January 20, 1934

Rates charged on horses and mules, in carloads, from San Antonio, Hondo, Uvalde, and Camp Wood, Tex., to Meridian, Miss., and from San Antonio to Ponchatoula, La., found not unreasonable. Complaints dismissed.

H. J. Fernandez for complainants.

H. G. Thompson, J. L. Sheppard, J. R. Bell, G. H. Muckley, J. L. Stewart, and F. L. Gordon for defendants.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, PORTER, AND TATE BY DIVISION 2:

The shortened procedure was followed. Defendants filed exceptions to the examiner's recommendations, and our conclusions differ therefrom.

Complainants allege that unreasonable rates were charged on seven carloads of horses and mules, shipped between April 2 and June 9, 1931, two from San Antonio, Tex., two from Hondo, Tex., and one each from Uvalde and Camp Wood, Tex., to Meridian, Miss., and one from San Antonio to Ponchatoula, La.

The shipments apparently were unrouted. Those to Meridian, from San Antonio, Hondo, and Uvalde moved over the lines of the Texas & New Orleans Railroad Company to Shreveport, La., and the Yazoo & Mississippi Valley Railroad Company through Delta Point, La., to destination, 748, 796, and 839 miles respectively. The shipment from Camp Wood moved over the Uvalde & Northern Railway Company to Uvalde Junction, Tex., thence over the above route to Meridian, 876 miles. The shipment from San Antonio to Ponchatoula moved over the Texas & New Orleans to New Orleans, La., and the Illinois Central Railroad beyond, 615 miles. The shortline distances are 717, 767, 809, 847, and 525 miles respectively. No joint rates were in effect, and the applicable combination rates to Meridian were composed of factors from San Antonio, Hondo, Uvalde, and Camp Wood of 63, 68, 70, and 72.5 cents per 100 pounds

This report also embraces No. 25121 (Sub-No. 1), Marvin Owen v. Illinois Central Railroad Company et al.

respectively, to Delta Point, La., plus 33 cents beyond. The applicable combination to Ponchatoula from San Antonio was composed of 63 cents to New Orleans and 20.5 cents beyond. Charges were collected on the two shipments from San Antonio to Meridian based on the actual weights of 23,700 and 23,800 pounds respectively, and on the other shipments at the minimum of 23,000 pounds, and the applicable rates, except one from Hondo upon which an inapplicable rate of $1 was charged, resulting in an undercharge of $2.30. Complainants seek reparation based on rates to Meridian from San Antonio, Hondo, Uvalde, and Camp Wood of 71, 73, 75, and 77 cents respectively, and to Ponchatoula from San Antonio of 66 cents. The rates sought are based on the scale prescribed in Horse and Mule Rates in the Southwest, 1924, 93 I.C.C. 479, hereinafter called the Southwestern case, for distances over the used routes, plus an arbitrary of 3 cents for crossing the Mississippi River.

Although the transportation from the origins to Meridian, with the exception of 144 miles from Delta Point to Meridian, and from San Antonio to Ponchatoula, excluding a haul of 49 miles beyond New Orleans, was in the territory wherein rates established as a result of the findings in the case cited apply, the charges collected were considerably higher than those which would have accrued if the haul had been entirely within the Southwest. Our attention is directed to rates on horses and mules from Oklahoma City, Okla., and Wichita, Kans., of 75 cents to Meridian and 82 cents to Mobile, Ala., applicable over various routes ranging from 735 to 1,035 miles, and to rates from Oklahoma City and Wichita of 64 cents to Dyersburg, Jackson, Tiptonville, and Bruceton, Tenn., and 68.5 cents to Tupelo and Saltillo, Miss., 564 to 709 miles. The rates from Oklahoma City and Wichita were established as a result of the maintenance by direct lines of joint rates from Kansas City, Mo., which are on a lower basis than generally prevails from and to the origin and destination territories considered. The rates from Wichita and Oklahoma City are somewhat higher than would result from application of the Southwestern case scale, for the short-line distances. In certain cases we have fixed rates on horses and mules made approximately 115 percent of those on cattle. If 115 percent of the rates on cattle prescribed in Livestock-Western District Rates, 176 I.C.C. 1, herein after called the Western case, were used, rates lower than those sought would result. Defendants refer to rates prescribed for application in the Southwest on other commodities which, based on average loadings and the average short-line distance of 736 miles between the considered points, yield car-mile earnings ranging from 27.8 to 48.3 cents. The car-mile earnings under the assailed rates

ranged from 28.6 to 36.6 cents, and averaged 30.9 cents for the average distance of 736 miles.

Rates on horses and mules from the Southwest to the South are and have been generally on the combination basis. Combination rates are not, as complainants indicate, necessarily unreasonable. In Livestock Traffic Assn. v. Abilene & S. Ry. Co., 177 I.C.C. 180, combination rates on certain edible livestock from points in Texas to certain points in Indiana and Ohio were found not unreasonable. In 1925 the Southwestern case, with certain other cases involving rates on horses and mules in western trunk-line territory, was reopened with respect to future rates only and the consolidated proceedings were decided July 24, 1933, Western Horse and Mule Rates, 195 I.C.C. 417. We found therein that maximum reasonable rates for the transportation of horses, mules, burros, and asses between points in southwestern and western trunk-line territories would be 115 percent of the rates on cattle from and to the same points prescribed in the Western case, subject to a minimum of 23,000 pounds, and the findings in the Southwestern case were modified accordingly.

In Patterson v. Alabama G. S. R. Co., 197 I.C.C. 591, decided December 2, 1933, division 4 found that the applicable combination rates on horses and mules, in carloads, from certain points in Texas and other States to Atlanta and Howell Stock Yards, Ga., had not been unreasonable in the past, but that they were and for the future would be unreasonable to the extent that they exceed or may exceed rates, subject to a minimum of 23,000 pounds, made 115 percent of scale prescribed on fat cattle in Livestock-Western District Rates, 176 I.C.C. 1, 190 I.C.C. 611, applied in the manner prescribed in said reports for the distances to the east-bank Mississippi River crossings, plus the scale approved on horses and mules in Livestock, Southern Territory Rates, 171 I.C.C. 721, from the east-bank river crossings, applied in the manner approved in said report.

We find that the rates assailed were not unreasonable. The complaint will be dismissed.

198 I.C.C.

No. 25577

WENK BROTHERS v. CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY

Submitted November 25, 1933. Decided January 22, 1934

Rates charged on eggs and dressed poultry, in carloads, from Madison, S.Dak., to Chicago, Ill., destined to points east of the Illinois-Indiana State line found not unreasonable. Complaint dismissed.

R. D. Springer for complainants.

J. N. Davis, C. L. Taylor, and P. F. Gault for defendant.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MCMANAMY, LEE, AND MILLER BY DIVISION 3:

Complainants filed exceptions to the examiner's report.

Complainants, Wenk Brothers, a partnership consisting of George, Ray E., and William Wenk, allege that the rates charged from February 16, 1929, to December 2, 1931, on eggs and dressed poultry, in carloads, from Madison, S.Dak., to Chicago, Ill., destined to points east of the Illinois-Indiana State line were unreasonable, unduly prejudicial to complainants at Madison, and unduly preferential of shippers at Sioux Falls, S.Dak., and Pipestone, Minn.

Madison, in southeastern South Dakota, is served only by defendant. The distance from Madison to Chicago over defendant's lines via Pipestone is 583 miles and by way of Sioux Falls, the route customarily used, 594 miles. The short-line distance is 559 miles. Eggs and dressed poultry are rated third class in western and official classification territories, minimum 20,000 pounds. From Madison to Chicago the third-class rate of 83.5 cents per 100 pounds was applicable on these commodities prior to November 1, 1929. Effective that date following the findings in Duluth Chamber of Commerce v. Chicago & N.W. Ry. Co., 156 I.C.C. 156, defendant established a commodity rate of 92 cents from Madison to Chicago. In this case a scale of maximum reasonable rates, herein called the Duluth scale, was prescribed for application on these commodities from points in South Dakota, among others, to Duluth, Minn., and the then existing rates found unduly prejudicial to Duluth and unduly preferential of Chicago to the extent that the rates to Duluth were more than 110 percent of the rates for like distances contempo